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Recruitment and Pay at the Establishment Level: Gender Segregation and the Wage Gap in Portugal

  • Vieira, José António Cabral

    ()

    (University of the Azores)

  • Cardoso, Ana Rute

    ()

    (IAE Barcelona (CSIC))

  • Portela, Miguel

    ()

    (University of Minho)

This paper aims at quantifying the trend in worker segregation at the establishment level and its impact on wages in Portugal over a fifteen year period. We concentrate on the gender dimension, to answer the questions: have changes in recruitment policies at the establishment level resulted in higher gender segregation in the labour market? What is the impact of segregation on wages? Is that impact different for men and women? A large linked employer-employee data set is used. Systematic and random components of segregation are computed. We use standard wage decomposition techniques to evaluate the impact of the composition of the labour force at the establishment level on wages. Results reveal a high degree of systematic gender segregation. A higher proportion of females in the establishment lowers females' wages while, on the contrary, it raises males' wages. Between mid-80s and late-90s, the contribution of the gender composition of the workforce within the establishment to the wage gap increased, though fluctuating within that period. The evidence gathered lends support to the taste-based model of employer behaviour.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 789.

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Length: 20 pages
Date of creation: Jun 2003
Date of revision:
Publication status: published as 'Gender segregation and the wage gap in Portugal: an analysis at the establishment level' in: Journal of Economic Inequality, 2005, 3 (2), 145-168
Handle: RePEc:iza:izadps:dp789
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  1. William J. Carrington & Kenneth R. Troske, 1998. "Sex segregation in U.S. manufacturing," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(3), pages 445-464, April.
  2. Kiker, B. F. & Santos, Maria C., 1991. "Human capital and earnings in Portugal," Economics of Education Review, Elsevier, vol. 10(3), pages 187-203, September.
  3. Carrington, William J & Troske, Kenneth R, 1997. "On Measuring Segregation in Samples with Small Units," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(4), pages 402-09, October.
  4. Erica L. Groshen, 1987. "The structure of the female/male wage differential: is it who you are, what you do, or where you work?," Working Paper 8708, Federal Reserve Bank of Cleveland.
  5. Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August.
  6. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
  7. Kenneth R Troske & William J Carrington, 1992. "Gender Segregation Small Firms," Working Papers 92-13, Center for Economic Studies, U.S. Census Bureau, revised May 1993.
  8. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
  9. Reilly, K.T. & Wirjanto, T.S., 1998. "Does More Mean Less? The Male/Female Wage Gap and the Proportion of Female at the Establishment Level," Papers 98-04, Centre for Labour Market and Social Research, Danmark-.
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